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US economic growth puts UK in the shade

US economic growth seems to be back on track after reports of 3.2% growth in the last three months of 2010.

The figure represents a 2.6% from the previous quarter, although it was weaker than.the predicted rate of 3.5%.

And the annual rate for consumer spending was up by 4.4% - the fastest rise for over four years.

The figures meant the US economy is making a better recovery from the recession than the UK.

Paul Ashworth, Chief US Economist at Capital Economics, said: ‘With the new payroll tax reduction kicking in on January 1st, we expect first-quarter GDP growth to be equally as strong, drive again by a good showing from consumption.

‘Nevertheless we also anticipate a slowdown in GDP growth later in 2011, as the stimulus begins to fade.’

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